Genius: Elizabeth Warren Thinks Hiring More Bureaucrats Will Save the Banking System

Politicians love creating new programs and agencies. But no one ever bothers to check if they actually work.

There’s no accountability, no metrics, no plan—just endless bureaucratic expansion.

Take Elizabeth Warren’s pet project, even before she was a Senator— the Consumer Financial Protection Bureau.

Warren ensured the CFPB had less oversight than a typical agency by having funded directly from the Federal Reserve. Government agencies are normally funded through Congressional appropriations… so by funding the CFPB with money from the central bank instead, Warren’s new toy essentially became immune to budgetary oversight.

On top of that, the CFPB was designed to have just a single director— instead of a bipartisan commission, which is normal for a government agency. So the CFPB is unique in that vast power is consolidated with a single, unelected official who has little accountability or oversight.

What could possibly go wrong?!?!?

Now, the whole mission of the CFPB was to watch over banks, mortgage lenders, credit card companies, and other financial institutions to prevent deceptive and abusive financial practices.

And as we all know, the second the CFPB came into existence, no bank ever took advantage of their customers ever again.

Oh wait, let’s briefly review all the wrongdoing by just one bank, Wells Fargo, just since the CFPB was created…

Wells Fargo’s rap sheet includes: forging customer signatures to open accounts in order to boost sales goals; selling unnecessary car insurance leading to 20,000 vehicle repossessions; a “software glitch” resulting in over 500 wrongful home foreclosures; overcharging 26x on foreign currency transactions; illegally repossessing military members’ vehicles; and actually selling customer Social Security Numbers to identity thieves.

So by any objective standard, the CFPB has been a complete and total failure.

But politicians never bother to check in with their Frankenstein agencies to make sure they are performing as intended. They create new bureaucracies, and simply assume that everything will go according to plan. It’s genius!

So we shouldn’t be surprised by Elizabeth Warren’s ‘solution’ to fix the FDIC.

The Federal Deposit Insurance Company is tasked with regulating the nation’s banks. Yet it failed to catch glaring issues in the banking system leading up to the collapse of Silicon Valley Bank and Signature Bank in 2023.

Under the alarmingly terrible leadership of Marty Gruenberg, workers were too busy drunkenly puking off a government building as a right of passage, or sending dick pics to colleagues, or launching into racist tirades… so they simply didn’t have the attention span for actual bank oversight.

According to a government report released last year, senior bank examiners were sending explicit photos to female colleagues, supervisors were trading pay raises for sex, and executives were brushing it all under the rug by promoting the offenders.

Even when they actually did their jobs, FDIC employees admitted that they were afraid to deliver bad news about troubled banks because their Chairman, Marty Gruenberg, had a habit of losing his temper rather than solving problems.

So employees were too intimidated by Gruenberg’s nasty temper to report problems in the banking system… and several banks failed. .

Did Elizabeth #MeToo Warren call for Gruenberg’s firing?

Of course not!

Despite overseeing one of the most disgraceful scandals in recent government history, Gruenberg managed to cling to power until he could quietly retire with honors.

But now, in her infinite wisdom, Elizabeth Warren has figured out how to fix the FDIC: hire more bureaucrats!

According to Warren, the real reason banks failed was because there weren’t enough bureaucrats. It had nothing to do with bad leadership, or failed Congressional oversight of the agency.

In a letter sent to the FDIC’s Inspector General, Warren—along with a few of her equally deluded colleagues—demanded an explanation for why the agency rescinded more than 200 job offers.

She insists that the FDIC is “already severely understaffed” and that not adding more bureaucrats “threatens the stability of the banking system.”

This type of willful ignorance of reality is very ‘on brand’ for Warren.

Last year, when Walgreens closed locations in high-crime areas because they were constantly being looted, she blamed the company for “abandoning” communities, rather than acknowledging that rampant shoplifting made those stores impossible to operate.

When Amazon pulled out of its $1.7 billion acquisition of iRobot due to regulatory hurdles, leading to mass layoffs at the company, she cheered as if she’d just saved America from an evil vacuum overlord.

And as always, the solution she offers is the same one she applies to every problem: more government, more spending, more pointless jobs for bureaucrats who won’t actually fix anything.

It’s actually hilarious to watch politicians like Elizabeth Warren do mental gymnastics in order to justify their idiotic positions. And when you look closely, you can see they don’t actually stand for anything.

This is a woman who has continually railed against the Big Pharma companies for raising prescription drug prices. Yet then Warren practically foamed at the mouth at RFK Jr.’s confirmation hearing, screeching in vehement opposition that he might harm the pharmaceutical companies.

(Then again, she did accept the second most money of any politician from Big Pharma during the 2020 election cycle— behind only Bernie Sanders.)

But what else could you really expect from someone who started her career by lying about being a Native American in order to be considered a minority professor at Harvard.

Source

Simon Black is an international investor, entrepreneur and permanent traveler. His daily letter is both educational and entertaining, and we suggest that those who want unbiased, actionable information about global opportunities sign up for Sovereign Man’s free, actionable newsletter at http://www.SovereignMan.com.

From Simon Black of SovereignMan.com

Source: https://www.schiffsovereign.com/trends/genius-elizabeth-warren-thinks-hiring-more-bureaucrats-will-save-the-banking-system-152091/